Leasing a commercial property is much more than simply placing an advertisement online. A professional commercial leasing agent plays a vital role in attracting quality tenants, negotiating favourable lease terms and minimising vacancy periods. An active leasing agent will know the market, tenants looking for new premises and expected market rentals and incentives. Choosing the right leasing agent can significantly improve the long-term performance of your investment.
Market Assessment and Rental Advice
A good leasing agent should begin by providing an honest appraisal of your property and the current market conditions. They should advise on:
- Current market rental rates
- Incentives being offered by competing landlords
- Expected vacancy periods
- Target tenant profiles
- Recommended lease terms
This advice should be supported by recent leasing evidence.
Property Presentation
First impressions matter. Your leasing agent will recommend practical improvements that will make your property more attractive to prospective tenants, including:
- Cosmetic upgrades
- Repairs and maintenance
- Floor plans
- General tidy ups
- Removal of exiting tenants fit-out if it old or tired. A clean offering is easier for tenants to visualise their own fit-out business needs.
Well-presented properties generally lease faster and often achieve stronger rental outcomes.
Marketing the Property
An experienced leasing agent should prepare a comprehensive marketing campaign that may include:
- Commercial property websites
- Direct approaches to known businesses
- Social media marketing
- Email campaigns
- Signage
- Networking with other commercial agents
The aim is to expose your property to the widest pool of suitable tenants as possible.
Managing Enquiries and Inspections
Your leasing agent will handle all enquiries professionally and qualify prospective tenants before arranging inspections.
You should also expect regular updates from your leasing agent on:
- Number of enquiries received each week
- Inspection feedback (good and bad)
- Market response
- What other properties tenants are considering
- Suggested adjustments if required
Tenant Qualification
When deciding on a suitable tenant the leasing agent will assess Tenant’s:
- Financial strength
- Business history
- Industry experience
- References
- Ability to meet lease obligations
- Reason for needing new premises
Securing a reliable tenant reduces the risk of rental arrears and future vacancies.
Negotiating the Lease
Commercial lease negotiations can be complex. Your leasing agent will negotiate the best possible outcome while balancing current market conditions.
Negotiations commonly include:
- Net rental rates
- Lease term and Rights of Renewals
- Rent reviews
- Tenant Incentives
- Outgoings
- Fit-out contributions
- Bank guarantees or other guarantees
An experienced negotiator can often recover far more value than the cost of their commission.
Choosing the Right Leasing Agent
Not all commercial leasing agents offer the same level of service. Before appointing an agent, ask about their recent leasing results, average vacancy periods, marketing strategy and communication process. Experience in your property’s location and asset type can make a significant difference to both leasing time and rental achieved.
A proactive commercial leasing agent should act as your trusted adviser throughout the process, protecting your investment, attracting quality tenants and negotiating lease terms that maximise your property’s long-term value.
Disclaimer This article is general in nature, and outlines general market trends and a general analysis of one or more particular areas. This article should not be construed as providing financial advice (particularly as to whether a reader should or should not invest in a particular area). For financial advice we recommend that readers contact a licensed financial planner to obtain specific advice that takes into account their particular circumstances. Top Property Agents Australia Pty Ltd is not licensed to provide financial advice under the Corporations Act 2001 (Cth) and related legislation.